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Wednesday, December 21, 2011

Tanger Factory Outlet Centers Inc. appears to still be considering
plans to build at Westgate City Center, a project that would energize
the struggling area with new customers, according to city and outside
sources.

Glendale officials declined to comment. A message left with Tanger CEO Steven Tanger was not returned.

Charlie Dunlap, who is asset
manager for the investors who own a portion of Westgate, said decisions
on big changes to the parcel and its management are expected to be made
by the end of the year.

"Right now everything is kind of in limbo. We're in some negotiations
that will determine what the direction is in the development," Dunlap
said. "I really can't comment on those because I'm not part of them ...
But I think all the changes planned are going to be great."

When asked whether Tanger was moving forward with the project,
including working on a site application to Glendale, Dunlap said he
isn't directly involved because "those (negotiations ) are between the
lender and Tanger."

The North Carolina-based outlet developer announced plans for a major shopping center in the West Valley earlier this year.

Initial talks were to locate the outlet mall at the undeveloped
Algodon Center near Loop 101 and Camelback Road in Phoenix but the
company pulled out last spring, citing lack of interest from tenants. In
May, former Westgate developer the Ellman Cos. announced it had opened
talks with Tanger to relocate just a few miles north.

Little was heard about the project through the summer and fall, as the Ellman Cos. lost most of Westgate to foreclosure.

Two major lenders took over different parts of the property and have been working to pump up business.

The investmentfirm
iStar Financial now owns the developed portion of Westgate that boasts
shops, restaurants and a movie theater. The undeveloped portion, where
the Tanger outlet may go, is controlled by CCD Equity Partners LLC, an
investor group previously represented by Credit Suisse.

The Tanger outlet would have "natural synergy" with the Westgate shopping and entertainment core that surrounds Jobing.com Arena, said Jeff Teetsel, asset manager for iStar Financial.

Teetsel said he's generally aware of the talks, but is not directly
involved. "It's potentially very complementary with Westgate and could
further enhance the visitors and traffic flow to this intersection," he
said. "We're watching it as a supportive neighbor."

Dunlap, of real-estate firm RRA Cos., the asset manager for CCD Equity Partners, said he has high hopes for Westgate's future.

"It's going to be a major draw," he said. "It's a shame because what
happened there, it was a perfect storm. You had the economy go to pot.
You had the confusion of whether the Coyotes are going to stay or not.
... The previous owner just didn't have enough income to do the things
to turn it around because the economy went south on him and the
opportunities withered up. Now that we've got lenders in place who are
committed to success, I think it's going to be a tremendous asset to the
entire community."

He said CCD Equity Partners has the resources to make Westgate successful.

The Republic obtained a draft site plan for a Tanger outlet
development dated Nov. 15, which closely match project details announced
by the Ellman Cos. last spring. It's unclear whether other, different
drafts exist.

A site plan is a map of what the developer intends to build and is
submitted through a site application to the city, one of the first steps
to gaining construction approval. The draft map has not been filed with
the city, and could go through changes before Tanger submits it.

The draft places the outlet mall at the southeast corner of Loop 101 and Glendale Avenue.

The draft shows the outlet center could wrap around the few buildings
that currently exist alongside dirt lots on 95th Avenue, like My Big
Fat Greek Restaurant and Bananas Ranas, and stop before the Hampton Inn
& Suites.

The draft drawing, prepared by the frequent Tanger architecture firm
Adams and Associates, notes construction could occur in two phases, with
the majority of the project completed in the first phase.

No timing was
given on the draft.

The project would bring relief to a corner of Westgate that can be overlooked by visitors.

"We couldn't be more excited and happy about it," said Ashley Young,
manager at My Big Fat Greek Restaurant, who said she heard about the
outlet center some time ago but hadn't heard any updates.
Tanger Factory Outlet Centers Inc.

The closest Tanger outlet to Arizona, in Barstow, Calif., features
brands such as Banana Republic, Coach, Gap, Michael Kors, Reebok and
Tommy Hilfiger.

Another one is planned in Scottsdale at Loop 101 and Indian Bend Road near the Talking Stick Resort.